Location Strategy and Layout Strategy.pptx

Location Strategy and Layout strategy.

1. Location Strategy and Layout Strategy Presented by: Harrison Torres

2. What is a business location strategy? A business location strategy is an organized plan for selecting the location for starting a business to achieve its goals and objectives. It aids in customer analysis, market segmentation, localization, and business branding at large . If you’re picking a location for your business, you’ll want to think about things like accessibility to roads, utilities, and training centers . Local and surrounding population demographics should be taken into account as well.

3. Reasons why location is important for a business Target Market Reach - Proximity to target demographics, high-traffic areas, and transportation hubs can enhance visibility and footfall, leading to increased sales and revenue . Competitive Advantage - a well-chosen location may offer unique advantages such as lower costs, proximity to suppliers or distribution channels, or access to specialized labor, which can contribute to a competitive advantage in the industry.

4. Reasons why location is important for a business 3.) Access to Resources and Talent- being in an area with a skilled labor pool or specialized talent relevant to the business can enhance operational efficiency and innovation . 4.) Regulatory and Legal Considerations:-Understanding and aligning with the legal and regulatory environment of a location can mitigate compliance risks and ensure smooth business operations.

5. Reasons why location is important for a business 5 .) Business Image and Branding - Choosing a location that aligns with the business's target market, industry positioning, and desired brand image can enhance credibility and attract the right customer base. 6.) Expansion and Growth Opportunities- Selecting a location that allows for scalability and accommodates potential business growth ensures long-term viability. It minimizes the need for costly relocations or disruptions when expanding operations or entering new markets.

6. Factors Influencing Location Strategy Proximity to clients/customers Distribution network Customer service Accessibility to resources Market research Cost of building materials Transport cost Local Labor Relocation Cost

7. Types of Location Strategies There are three basic types of place strategy : 1.) Intensive :  An intensive place strategy is when a company places its product in as many stores as possible. Candy companies often use this strategy, as they place their products in supermarkets, movie theaters, convenience stores and airports . 2.) Selective :  A selective place strategy is when a company places its product in only a few retail stores. For example, companies that manufacture expensive technology items often use this strategy.

8. Types of Location Strategies (2) 3.) Exclusive :  An exclusive place strategy is when a company places its product in one retailer. This is usually for luxury products that require salespeople to convey a lot of information about the product during the sale, such as cars.

9. Location Analysis Techniques

10. What is a business Layout Strategy? The process of arranging physical facilities and resources within a facility to optimize efficiency and productivity . A layout strategy is a plan that specifies how an organization will use its space and resources to meet its objectives efficiently. It is one of the key decisions that determines the long-run efficiency of operations.

11. Strategic Importance of Layout Proper layout enables: Higher utilization of space, equipment, and people Improved flow of information, materials, or people Improved employee morale and safer working conditions Improved customer/client interaction Flexibility

12. Six Layout Strategies 1.) Fixed- Position Layout large bulky projects such as ships and buildings 2.) Process-oriented layout deals with low-volume, high-variety production (“job shop”, intermittent production) 3.) Office Layout positions workers, their equipment, and spaces/offices to provide for movement of information

13. Six Layout Strategies (2) 4.) Retail Service Layout allocates shelf space and responds to customer behavior 5.) Warehouse Layout addresses trade-offs between space and material handling 6 .) Product Oriented layout seeks the best personnel and machine use in repetitive or continuous production

14. Fixed- Position Layout Design is for stationary project Workers and equipment come to site Factors Complicating a Fixed Position Layout: There is limited space at virtually all sites At different stages in the construction process, different materials are needed – therefore, different items become critical as the project develops. The volume of materials needed is dynamic.

15. Process-Oriented Layout Design places departments with large flows of material or people together Department areas having similar processes located in close proximity - e.g ., All x-ray machines in same area

16. Emergency Room layout

17. Office layout Design positions people, equipment, & offices for maximum information flow Arranged by process or product Example : Payroll dept. is by process Examples : - Insurance company - Software company

18. Office Layout

19. Retail/Service Layout Design maximizes product exposure to customers Arranged by process or product Decision variables Store Flow pattern Allocation of space to products Types Grid Design Fee- flow design

20. Retail/Service Layout – Grid Design

21. Retail/Service Layout - Free-Flow Design

22. Warehouse Layout Design balances space (cube) utilization & handling cost. Store Flow pattern Similar to process layout - Items moved between dock & various storage areas Optimum layout depends on Variety of items stored Number of items picked

23. Warehouse Layout

24. Product-Oriented Layout In a product layout, the machines, material and other facilities are placed as per the order of processing. It is often used when the production is to be performed on a large scale . Facility organized around product Types : Fabrication line; assembly line

25. Product-Oriented Layout

26. Factors Influencing Layout Strategy Layout strategy is influenced by several factors that need to be considered to create an efficient and effective layout within a facility . Product design Process flow of materials , information, and people throughout the production or service processes. Equipment and Machinery Material Handling Workforce Safety and regulations

27. References Location Strategy https ://www.wealthgist.com/why-location-is-important-for-a-business / https://www.indeed.com/career-advice/career-development/place-strategy#:~:text=There%20are%20three%20basic%20types%20of%20place%20strategy%3A,company%20places%20its%20product%20in%20one%20retailer.% 20 https:// www.iedunote.com/business-location-analysis Layout Strategy :